A cash book is used to record all cash transactions and serves as both a journal and ledger for cash and bank accounts. It has debit and credit sides, with receipts recorded on the debit side and payments on the credit side. The cash book can take different forms depending on the number of accounts recorded, from simple to double or triple column formats. The objectives of a cash book include finding total receipts and payments, ascertaining balances, and verifying cash on hand and in the bank.

2. Cash Book
 A cash book is a book of primary entry. All Cash
transactions are recorded in the “Cash Book”.
 It also serves the purpose of a ledger account
and therefore, the cash account and bank
acccount are not maintained in the general
ledger. Balances in the cash book are taken
directly to the trial balance.

3. FEATURES OF CASH BOOK
 To keep record of only cash transactions
 All receipts are recorded in debit side
 All payments are recorded in credit side
 Chronological (date wise) transaction recording
of all transactions.
 Performs function of both journal and ledger.

4. Objects or Need of cash book
 To find out the total cash receipts and cash payments
during a given period.
 To ascertain the balance of cash in hand and at bank at
any time without actually counting cash and examining
Bank passbook
 To verify the correctness of cash in hand and bank.

5. Types of cash book
 Simple cash book.
 Double column cash book.
 Triple Column cash book.
 Petty Cash book

6. Simple cash book
 prepared like cash account in ledger.
 All the cash receipts are entered in amount
column on debit side and all cash payments are
appeared on credit side of the amount column.
 Cash book is closed and balanced at the end of
the month.

7. Simple Cash Book
2012 Jan 1 Purchased goods for cash Rs. 10000
Jan 6 Sold goods for cash Rs. 25000
Jan 8 Paid rent Rs. 1000
Simple cash book
Date Receipts L.F Amount Date Payments L.F Amount
2012
Jan 6
Feb 1
To Sales
To Balance b/d
25000
25000
14000
2012
Jan 1
Jan 8
Jan 31
By Purchases
By Rent
By Balance c/d
10000
1000
14000
25000

8. Double column cash book
 A cashbook with cash and discount column is
called double column cashbook.
 Two accounts, cash and discount are combined
in this book.

9. Double column cash Book
2012 Jan 1 Paid rent Rs. 1300
Jan 5 Paid to Ram & Co. Rs.3950 Discount Received Rs. 50
Jan 6 Received from Gupta & Co. Rs. 9900 Discount allowed Rs. 100
Double column cash Book
Date Receipts L.FDiscount Amt. Date Payments LF Discount Amt.
2012
Jan 6
Feb 1
To Gupta
To Bal
b/d
100
100
9900
9900
4650
2012
Jan 1
Jan 5
Jan
31
By Rent
By Ram
By Bal c/d
50
50
1300
3950
4650
9900

10. Triple Column cash book
 A cash book with discount and bank column is
triple column cashbook. Three accounts are
combined.
 In business firm most of the payments are
received and paid by cheque. Transactions are
preformed through bank.

11. Triple Column Cash book
Date Receipts L.F Discount Cash Bank Date Payments L.F Discount Cash Bank

12. Petty Cash Book
 Used to record small amount of expenses.
 Like stationary, cleaning charges and postage.

13. Contra Entry
 Where for a single transaction entries are made
on both the sides of cash book.

14. Practical Problems